Case Studies
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Industries
L.B. Foster Company
- Industry: Distribution
- Service: Corporate Restructuring
Situation
L.B. Foster Company (NASDAQ, FSTR), a diversified 550 million dollar steel distributor, recognized a $55 million loss and was on the brink of bankruptcy.
Action
GGG was engaged to restructure the steel producer. Manufacturing inefficiencies were identified and eliminated, operations were stabilized, and debt was renegotiated. While implementing effective cost-cutting procedures, GGG emphasized the company’s production of higher margin lines.
Results
L.B. Foster was transformed into a debt-free, profitable organization within two years. The equity investor, Kohlberg, Kravis, Roberts & Co., was able to recoup its $90 million investment.